La. PSC to question Cleco CEO about possible sale

August 5, 2014 05:47 AM

August 5, 2014 05:47 AM

PINEVILLE, La. (AP) — Cleco Corp.'s top executive and several board members are expected to appear at Wednesday's meeting of the Louisiana Public Service Commission to answer questions related to a possible sale of the Pineville-based utility.

Bruce Williamson, Cleco's president, chief executive officer and chairman of the Board of Directors, has voluntarily agreed to appear, along with at least four board members.

In June, The Town Talk reports (http://townta.lk/WYxe5T) Cleco officials confirmed media reports that several parties had expressed interest in acquiring the company. Canadian group Borealis Infraustructure, Houston-based power company CenterPoint Energy Inc. and Spain-based utility company Iberdrola have all reportedly explored making bids.

Cleco has had no comment on the sale process since confirming buyer interest in June. At that time, company officials said there was no definite timetable for the process and no decision on a potential sale had been made.

"Our company's focus has been to provide reliable power to our customers, to support our communities and to offer employees career opportunities in a business that is financially strong and efficiently managed," a statement from Cleco Monday read. "We look forward to meeting with the commissioners, hearing their input and working together as we continue to prepare our company for the future."

Cleco officials are expected to be asked whether they fully informed commissioners about the sale interest before the PSC voted to extend Cleco's Formula Rate Plan on June 18. Analysts pegged the four-year extension as a boost to Cleco's sale value, since it could provide potential buyers with confidence in the company's revenues and stability going forward.

Clyde Holloway — whose district on the PSC includes Allen, Avoyelles, Catahoula, Evangeline, Grant, LaSalle, Rapides and Vernon parishes — has been critical of Cleco leadership since news of the sale broke.

Holloway has called on Williamson to resign. According to filings with the U.S. Securities and Exchange Commission, Williamson could receive a package of cash, stock and benefits totaling more than $29 million if Cleco is sold. Six other executives could receive a total of $20 million.